This paper presents a literature review on governance and structure of higher education and a case study of a governance review in Nova Scotia (Canada), paying particular attention to the role of intermediary bodies between universities and governments. Types of governing structures are described. Issues in determining the ideal structure are then discussed, focusing on the principles of quality, accessibility, diversity, autonomy and accountability, incentives, and freedom. The paper then presents a counterbalance of these ideals with the reality of a recent case study where politics, both governmental and institutional, appeared more important than ideals. Four governance options developed by consultants to the Council of Nova Scotia University Presidents (CONSUP) are described, followed by the CONSUP modified version, and the response of Nova Scotia's government in granting executive authority to the Nova Scotia Council on Higher Education on the matter of funding allocations. The paper concludes that many governance problems stem from scarcity of resources, that institutions need to work closely with one another to ensure the best use of the available resources, and that an independent and effective coordinating body would be an invaluable aid to ensuring that Nova Scotians have access to postsecondary education of the highest quality. (Contains 19 references.) (GLR)